Growing up, Jacob Palmer thought skilled manual jobs were “dirty, sweaty” and definitely not for him. University seemed like the obvious path. But after a year of remote learning during the covid pandemic, Palmer realised higher education was not delivering what he hoped. He dropped out after his freshman year, trained as an apprentice electrician, and by 2024 had started his own business.
At just 23 years old, Palmer now owns a warehouse, drives a pickup truck, and runs a YouTube channel with more than 33,000 subscribers who watch him fix everything from smoke detectors to Tesla chargers. He expects to bring in $155,000 in revenue this year, with about 10% coming from YouTube. For him, the appeal of the trade is straightforward: “You get paid to learn, you get paid pretty well, and you get massive job security.” While many graduates worry about artificial intelligence replacing entry-level white-collar jobs, Palmer is unconcerned. Someone, he points out, still has to wire the data centres.
Palmer’s story reflects a broader shift among Generation Z. Confidence in the value of a university education has eroded sharply. Only about one-third of American adults now say university is “very important,” down from three-quarters in 2010. Many cite soaring tuition costs and a perceived mismatch between degrees and real-world skills. Adjusted for inflation, tuition at public universities has more than doubled over the past three decades.
At the same time, the job market for new graduates has become more uncertain. Research from Stanford, Harvard, and King’s College London suggests that firms adopting generative AI tend to hire fewer junior white-collar workers. In the United States, unemployment among young degree-holders has risen, and underemployment is widespread: more than half of graduates work in jobs that do not require a four-year degree within a year of finishing university, and most who start underemployed remain so for years.
Against this backdrop, interest in skilled trades is growing. Social-media platforms are filled with plumbers, electricians, and welders sharing their daily work and attracting large audiences. Advertising has picked up on the theme too—one London Tube ad reads, “Hey AI, bend this copper pipe,” followed by the reply: “Sorry, I can’t do that.”
The numbers reflect this renewed interest. Enrolment in vocational and trade programmes at American community colleges has jumped nearly 20% since 2020. Apprenticeships have more than doubled over the past decade. Many adults now say they would recommend vocational or trade school over university to high-school graduates.
This shift does not mean university has lost all value. Graduates over 25 still tend to earn more and face lower unemployment overall. But outcomes vary widely by degree. STEM graduates earn far more than arts and humanities majors, and some trades now rival or exceed many graduate salaries. Lift technicians, for example, earn a median annual salary above $100,000. Top electricians, plumbers, and aircraft mechanics can do the same—without holding a bachelor’s degree.
Demand for skilled workers is especially acute in advanced manufacturing, defence, and energy. The semiconductor industry alone expects tens of thousands of technical roles to go unfilled due to skills shortages. In Britain, ageing workforces have created serious gaps in trades like welding, which are critical for infrastructure, energy, and defence projects.
Despite these opportunities, stigma remains. Many parents still see blue-collar work as a dead end. Coordination problems between schools, employers, and governments also persist, with training programmes sometimes failing to align with industry needs.
Some countries offer a model for doing better. Switzerland, for instance, routes most young people into vocational training while allowing easy movement between vocational and academic paths. This flexibility—known as “permeability”—helps avoid locking students into rigid tracks. Elsewhere, newer approaches such as degree apprenticeships are gaining traction. These allow students to earn a university degree while working and being paid by an employer.
Companies report strong results. British defence firm BAE Systems receives tens of thousands of applications for a limited number of apprenticeship spots each year. In the United States, chipmakers like TSMC are launching apprenticeship programmes that combine paid work with community-college study. Participants avoid student debt while gaining credentials and practical experience.
For many young people, the calculation is simple. Faced with high tuition, uncertain job prospects, and rapid technological change, learning a trade—or combining education with hands-on work—looks less like a fallback and more like a smart strategy for the future.